LEASE COMMITMENTS (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Schedule of lease related assets and liabilities

The following table presents lease balances and their location on the Consolidated Balance Sheet at December 31, 2020 and 2019:

millions	Balance sheet location	2020		2019
Assets:
Operating	Operating lease assets	$	1,062	$	1,411
Finance	Property, plant and equipment	365		397
Total lease assets		$	1,427	$	1,808
Liabilities:
Current
Operating	Current operating lease liabilities	$	473	$	579
Finance	Current maturities of long-term debt	42		51
Non-current
Operating	Deferred credits and other liabilities - Operating lease liabilities	641		872
Finance	Long-term debt, net	316		347
Total lease liabilities		$	1,472	$	1,849

Schedule of operating lease maturities

At December 31, 2020, Occidental’s leases expire based on the following schedule:

millions	Operating Leases (a)		Finance Leases (b)		Total
2021	$	456	$	44	$	500
2022	182		43		225
2023	108		41		149
2024	87		46		133
2025	71		30		101
Thereafter	385		231		616
Total lease payments	1,289		435		1,724
Less: Interest	(175)		(77)		(252)
Total lease liabilities	$	1,114	$	358	$	1,472

(a)The weighted-average remaining lease term is 6.2 years and the weighted-average discount rate is 4.73%.

(b)The weighted-average remaining lease term is 10.6 years and the weighted-average discount rate is 3.47%.

Schedule of finance lease maturities

At December 31, 2020, Occidental’s leases expire based on the following schedule:

millions	Operating Leases (a)		Finance Leases (b)		Total
2021	$	456	$	44	$	500
2022	182		43		225
2023	108		41		149
2024	87		46		133
2025	71		30		101
Thereafter	385		231		616
Total lease payments	1,289		435		1,724
Less: Interest	(175)		(77)		(252)
Total lease liabilities	$	1,114	$	358	$	1,472

(a)The weighted-average remaining lease term is 6.2 years and the weighted-average discount rate is 4.73%.

(b)The weighted-average remaining lease term is 10.6 years and the weighted-average discount rate is 3.47%.

Schedule of lease costs

The following tables present Occidental’s total lease cost and classifications, as well as cash paid for amounts included in the measurement of operating and finance lease liabilities for the years ended December 31:

millions
Lease cost classification (a)	2020		2019
Operating lease costs (b)
Property, plant and equipment, net	$	197	$	449
Operating expense and cost of sales	557		391
Selling, general and administrative expenses	107		92
Finance lease cost
Amortization of ROU assets	29		19
Interest on lease liabilities	14		2
Total lease cost	$	904	$	953

(a)Amounts reflected are gross before joint-interest recoveries.

(b)Included short-term lease cost of $207 million and $404 million and variable lease cost of $95 million and $162 million for the years ended December 31, 2020 and 2019, respectively.

millions	2020		2019
Operating cash flows	$	506	$	262
Investing cash flows	$	89	$	112
Financing cash flows (a)	$	29	$	19

(a)Excludes cash received of approximately $300 million associated with a failed sale-leaseback in 2019, see Note 4 - Divestitures and Other Transactions.